This application relates generally to real-property mortgages. More specifically, this application relates to methods and systems for financing recurring expenses with a loan secured by real property.
Typical property owners have a number of expenses. A common ordering of their living costs for property owners in order of expense is: their home mortgage payment, healthcare, food, energy, and telecommunications. Of these five principal expenses, only the mortgage payment provides financing over an extended period of time. The other expenses are paid as they are incurred and may be subject to substantial variations as a result of external impacts, such as when world events affect the availability, and therefore the cost, of energy sources.
It is commonly known that medical and healthcare expenses are increasing rapidly. Currently, the average premium for a family medical insurance policy in the United States is $9086/year. The average annual out-of-pocket expenses for healthcare in the United States is $2664. Medicare managed-care plans will pay an estimated $1964 in average annual out-of-pocket expenses. On average, seniors spend about $2300 per year on medicines and drugs. While these costs are already high, they are also increasing at rates that generally exceed average inflation rates, making their impact even more significant. Furthermore, the impact of these costs may sometimes take the form of a sudden unexpected cost that arises as a result of an unanticipated illness or accident.
There is, thus, a general need in the art for methods and systems that mitigate the effect of these costs.